The Massachusetts Office of the Attorney General worked for years to hold Uber and Lyft accountable for alleged wage and hour law violations. The state asserts that the companies have gone as far as attempting to rewrite state employment law. A pursued 2024 ballot issue would not have guaranteed drivers state minimum wage. Now, the companies have settled with the state, and the ballot item will dissolve. They agree to bump driver wages to $32.50 per hour. What’s more, Uber and Lyft will pay $175 million for related allegations and establish new benefits for current drivers.

Per Salary.com, the average Uber or Lyft driver in the U.S. earns $19 per hour. This year, if a driver earns $27 per hour, they’re in the 90th percentile of wage earners at the companies. I live in Columbus, Ohio, and according to the site, drivers earn about $17 per hour here in the Heartland.

The new settlement jump-starts new benefits for Massachusetts-based Uber and Lyft drivers. It ensures drivers earn one hour of sick day pay per 30 hours of work. The maximum agreed-upon paid sick time is up to 40 hours. The companies must also upgrade their driver platforms to allow drivers to view and use their sick hours.

Additionally, drivers can combine hours worked for both companies. As such, anyone who drives more than 15 hours per week will earn a health insurance stipend. These funds can be used to pay for plans via the Massachusetts Health Connector.

Other new benefits include occupational accident insurance paid by Uber and Lyft and the ability for drivers to clearly see trip destinations, lengths, and estimated earnings before accepting.

The $175 million in settlement funds will be mostly distributed to current and past drivers to help correct previous gaps.

In a statement, Uber said, “In taking this opportunity, we’ve resolved historical liabilities by constructing a new operating model that balances both flexibility and benefits. This allows both Uber and Massachusetts to move forward in a way that reflects what drivers want and demonstrates to other states what’s possible to achieve.”

By nodding to other states, perhaps we’ll see a wave of Uber and Lyft wage and benefit increases across the country.